Opinions
David Driscoll
First Cash Financial Services
FCFS-N
PAST TOP PICK
Jul 27, 2017
$58.950
Stock price when the opinion was issued
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TOP PICK
BUY
It's up 43% year to date. They're the biggest operator of 2,400 pawn stores in the US and into Latin America. If the world blows up, you want to be in gold--and people bring in their gold to these stores. It's a way of getting gold expsoure but also a yield. Their dividend is growing., 17% last year. Return on invested capital is 12%.
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PAST TOP PICK
(A Top Pick Dec 07/18, Down 1%) Not a bad return, given what's happening in Latin American markets this year. FCFS runs American pawn shops, as well as in Mexico and South America. They grow at 5% organically; dividend rising 10-15%. But nobody wants to invest in Latin American which holds back this stock. A plus: it isn't correlated to US banks. They also benefit from the rising gold price, since people pawn gold a lot. This is how he invests in gold.
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BUY
It's part of the S&P500 midcap so it moves in tandem with it. They had a very good quarter and their Latin American operations continue to grow. Retail sales and pawn fees have been rising. If they receive more jewellery, and the USD goes down and gold prices go out, they might be a beneficiary. They have owned it for 5 years and will continue to own it.
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(A Top Pick Aug 25/16. Up 16.18%.) Runs thousands of pawnshops, primarily in South America and Mexico, with a few in the US. This was a hedge against people who wanted to own the gold ETF.